Under-urbanization, defined as the achievement of a high industrial growth without a parallel growth of urban population, is one of the profound features of socialist development. Under-urbanization in China, in effect, represents a seriously distorted relationship between urbanization process and economic development as conventionally understood on the basis of well-documented Western experience. In an attempt to theorize the Chinese urbanization experience, scholars often treat it simply as a byproduct of restricted migration policies driven by the overall strategy of industrialization. In contrast to the thrust of the extant influential literature on urbanization in the context of socialist economies, where industrialization strategies alone are taken as fundamental in explaining what we find evolving through time, this book has focused, rather, on systemic characteristics that have not received the thorough treatment already given the strategies of industrialization. From a perspective of political economy to analyze the impacts of economic system requirements on urbanization, this study argues that the root cause of Chinese under-urbanization is systemic, in which state controls and the state-biased nature play a decisive role.